Grede Foundries files for bankruptcy protection - Kansas City Business Journal:

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Wayzata Investment Partners LLCof Wayzata, Minn., an SEC-registeredr investment adviser and manager of privatee investment funds with more than $5 billionm in assets, has offerec to provide a $45 million temporary loan facility to allow time for an orderlt sale under the supervision of the Bankruptchy Court. Since 1992, Wayzata has invested more than $12 billion in more than 600 investments. The made Tuesday in the U.S. Bankruptcgy Court for the Western Districtof Wisconsin, was driven by the impacr of the current economic downturn on the company and its particularly the automotive industry, said Richard Koenings chairma of the board of director for Wauwatosa-based Grede.
The reorganization and asset sale is expectedf to position the company for a turnarounx as the country emerges from the most difficultr economic period it has seenin generations, he “The significant deterioration in the automotive and construction industriews and the resulting impact on our company and the foundrty industry in general require that we take this strategix action,” Koenings said. “We have carefully exploree many options, and believe a sale to a strong financial backer like Wayzata is the best way to effectively proceed in what has been an exceedinglygdifficult marketplace.
” Koenings stressed that Grede Foundries remains in businesd and that jobs will remain during the “This move gives us the time to restructure while we continue to do business and operate our plants,” he “Grede will continue to buy goods and servicesd from its vendors, support its work forces and provide its customers with the same qualitty products and service they’ve come to expect from us. Our goal is to preservwe and strengthen our business so that we can compete successfull y inthe future.” Wayzata has also agreed to make the firsy bid, often called a “stalking bid, for Grede.
“Wayzata’s commitmen shows their belief in the strength of the Grede name and its respectedr position in thefoundry industry,” Koenings Sales of businesses in bankruptcy proceedings are often structured wheres one company makes the initial bid for anothe company’s assets. Under rules approved by the higher offers from third parties can be submitted ascompetinv bids. The “stalking horse” arrangement helps ensure that Gredd receives the best value for its assets and allowzs for offers that are best for the creditors whild preserving thebusiness operations, companyt management said.
Grede said that it has alreadgy received inquiries from other partiea that are interestedin Grede’s production capacity. Koenings said Grede expects the sale and related biddint process to move steadily througg thecourt system. “We are deeply committed to doinbg everything necessary to put our companh on solid footing as the nation beginsd to rise out of the worst economidc conditions since the Great he said. “Our customers very clearly want us to succeed and have been very Grede announced in May that it had laid off 81 employeeds from its foundry in Wauwatosa since the endof January. In the company revealed plans to closde its foundryin S.C.